Good afternoon, and welcome to Next Games January-December 2021 earnings webcast. My name is Saara Bergström, and I'm the Chief Communications Officer here at Next Games and your host today. Our speakers today are our CEO, Teemu Huuhtanen and Chief Financial Officer Annina Salvén, and then we're going to have a look at 2022 and beyond by Teemu. Without further ado, please, Teemu, let's start. Thank you, Saara. Good afternoon on my behalf also and welcome to this webcast. 2021 highlights, The main theme for last year was definitely the New Games we're developing, and by Q4, we had four teams working on under our New Games umbrella. On average, over 60% of our employees worked in R&D developing these New Games. At the same time, both Walking Dead games improved their profitability during 2021. If we look at the last year from a timeline perspective, during Q1, we did a share issue around EUR 4 million to support our future growth. In Q4, we announced up to $16.5 million co-development agreement. Also, during the same quarter, Stranger Things: Puzzle Tales was released in all the key markets, including the U.S. After the period, so 2022 in March, Netflix announced public cash tender offer for all shares and options in Next Games. If we look at the financial highlights, as you can see, the revenue was slightly down versus 2020, and so was EBITDA. It's really straightforward as our publishing EBITDA was a few percentage points lower than it was in 2020, and this is mainly due to the fact that we started scaling up Stranger Things: Puzzle Tales globally. The UA investments in Q4 and R&D was quite a bit higher than the previous year, 2020, being at EUR 6.7 million, which represented 27% of the revenue. The amount of employees at the end of the year was 121 when it was 104 in 2020. Let's look at the market. The global games market actually came down a bit during last year, and this is mainly due to the fact that in 2020 the markets just went up quite a bit mainly due to COVID pandemic. If we look at the mobile gaming market specifically, that market grew again last year, 4.4% year-over-year growth being around $91 billion. Looking forward, in 2024, it's estimated to be $16.4 billion, and the overall games market is expected to be around $220 billion. Out of the 3 billion gamers this year in 2022, almost all of them, 2.8 billion, are expected to play on mobile devices. Looking at the mobile gaming trends, there's few things that really kind of dictated last year. We have seen companies like Epic Games going after the companies like Apple and Google that own the distribution on mobile nowadays. It's very likely that we're gonna be seeing changes in the distribution ecosystem. Already, Apple and Google are demanded to offer third-party payments, and most likely the rev share that they're collecting from each transaction is gonna go lower, maybe during this year, but definitely in the future. Another thing was also kind of Apple-driven, so that's the IDFA, which means that it's more difficult to target all these high spenders on mobile now as personal data is kind of hidden in that sense. So, you know, this has caused a lot of problems for all the companies doing UA, so user acquisition on mobile. At the same time, this means that, you know, well-known brands in gaming and in overall are actually taking benefit out of this as people you know, first of all, it's more expensive to acquire new users. And if you have a game that people already recognize, you know, it's more likely that they're gonna keep coming back to that game or the new version of that game. Also, in a broader perspective, I think everyone is now understanding that, you know, you're not only competing against your other fellow game- makers and publishers, you're also competing against, you know, the time people have in their hands. You know, if they're streaming videos or whatever they might be doing. Expectations are growing, and, you know, people are expecting greater games. In that sense, the development of games most likely will be more expensive throughout the next and upcoming years as well. Let's look at the business review. Puzzle Tales rollout, like I mentioned, the U.S. was opened in September on Android, and then, iOS followed in October. Mainly the activities regarding Puzzle Tales happened during the last quarter of last year. By the end of the year, we were around 50,000 daily active users, and the ARPDAU kept improving throughout the year, and it was around $0.24 at the end of December last year. Basically, this is still the biggest team at Next Games. You know, therefore, we're gonna keep improving the game and further developing the game during this year. Right now the thinking is that the growth should coincide with the release of Season 4 of Stranger Things on Netflix. About Our World, like mentioned, the profitability improved, and the EBITDA level was around 15% for last year. Really, huge kudos and thanks to the team that has been. First of all, like, we down-scaled the team to hit the profitability targets that we've set for ourselves, and at the same time, the team has been really successful executing the content and updates for the game that, you know, the players really do appreciate. Same thing for No Man's Land. No Man's Land is really stable and highly profitable contributor for Next Games, and the EBITDA level was above 30% last year. The team really has brought content from the TV show into the game as well and introducing new game modes. Both Walking Dead games are doing well. Regarding Blade Runner Rogue, you know, this is a game that we've been developing for a while, for many years. You know, quite often in game development, you know, the game just doesn't come out as you expected, you know, for so many different reasons. We still have a great relationship with Alcon Entertainment, but we decided to cease the development of the game any further, and we won't be scaling up or publishing this game at all. Briefly about the new products, like mentioned, four new teams working on four new games, and basically all these smaller teams are under the New Games umbrella, and this umbrella or unit is really our internal incubator for these new game initiatives. Financial review, Annina. Thank you, Teemu, and good afternoon from me as well. Let's look at our numbers for 2021. Touching upon our P&L key figures, worth noting that between the second half of 2020 and 2021, our revenues actually started growing again for the first time. This is obviously due to the fact that we started scaling Stranger Things during the fourth quarter, that's where that growth is primarily coming from. Still having said that, you know, 2021 ended with slightly lower revenues than 2020, but as I mentioned, there was some growth on the second half of the year. Of course, also scaling Stranger Things affected our profitability, so that means that our EBITDA for the full year of 2021 was -EUR 600,000 when it was +EUR 500,000 in 2020. In terms of our publishing profitability, our publishing operations relate to those games that are live. As we can see, our publishing operations maintained basically at around the same level as it was the previous year. Having said that, it was affected by the fact that we did start scaling Stranger Things, and as you start scaling games, you know that's going to affect your user acquisition cost upfront, so t hat did affect our profitability slightly for 2021. As Teemu already mentioned, what balanced that out was that, of course, The Walking Dead games continued and indeed improved their profitability for the full year. When we look at our R&D, what we can see is that there was actually a growth in R&D expenses across the board, so there was more in personnel expenses than we had compared to 2020, and also in outsourcing, servicing, outsourced services and testing as well. That also means the general cost allocation was approximately the same as last year, but overall, we had higher costs in R&D. Our depreciations also increased slightly, and then our capitalization did increase as well, so we capitalized, due to the fact that we had more expenditure in R&D, we also capitalized more expenses in 2021. In terms of our balance sheet, if we look at our key figures, our balance sheet actually strengthened between 2020 and 2021. Our non-current assets are basically to a large majority our development expenses or our, let's say, investments in licenses and R&D. On our current asset side, we had cash position of EUR 2.2 million, but in addition to that, we had higher receivables amounting to EUR 5 million, as, for example, receivables relating to the co-development deal that we signed did not yet hit our cash flow by December 31st, s o they're visible as receivables, not in cash at hand. Overall, our long-term liabilities went up as we renegotiated our rent agreement for the offices. We prolonged our rental agreement, which increased our long-term liabilities. Our short-term liabilities have basically remained stable in terms of our trade payables, but there was an increase in our accrued liabilities. That is it from the financial review. I'm gonna hand it over back to Teemu. Thanks, Anniina. Outlook for 2022, basically, you know, we continue where we left off in 2021. Next Games will aim to improve the performance of key games and continue developing new games in 2022. Next Games expects R&D and admin costs to maintain a similar level to 2021. To the Netflix public cash tender offer of all shares and options in Next Games. The announcement came out on March 2nd, this month, and the offer price is EUR 2.10 per share, and that represents a premium of around 126% versus the day preceding the announcemen and the offer value is Next Games total equity at around EUR 65 million. Our major shareholders, Jari Ovaskainen and AMC Networks, that represent 43.3% of all the shares and votes in the company, have accepted the offer and are standing firmly behind it. The reasoning why this makes sense from Next Games perspective. We've been executing on our vision from since the company was founded in 2013, which is to be partner of choice for the biggest media and entertainment companies on this planet when they think about building games, especially mobile games. You know, we've been executing that, like I said, since 2013, and I think this is a natural next step for Next Games when we have this opportunity to start working together with the biggest streaming media company on the planet, which is Netflix. This is all about building next chapter in gaming as Netflix is now really putting focus on games on their platform as well. All in all, for the studio, for Next Games, it's all about leveling up in all the possible different fronts. Exciting opportunity for the current employees, even potentially work outside from Finland in the future. You know, thinking about, like, how to attract new talent both locally and internationally, this is definitely a benefit for Next Games. You know, it gives us really the resources and opportunity to focus on developing you know, the great Next Games that hopefully people, millions and billions of people around the globe will play eventually. Next steps. Saara. Thank you, Teemu and Annina. Next, we will look at some of the key dates on what is going to be happening next with the Netflix tender offer. As Teemu mentioned, the combination agreement was signed and announced on the 2nd of March. Today, on the 14th of March, the offer period starts, and we have also published the tender offer document on our website. Approximately the 8th of April, we're expecting the offer period to end, and still during Q2 2022, we're expecting the transaction to close. For more information regarding the tender offer and all of the materials, you can go to nextgames.com/investors/netflix offer, and you can also get in touch with us via our investors@nextgames.com email address. Now we will move on to questions and answers. There's a possibility to submit questions online as well as on the phone lines. Let's first start with a question related to the Netflix offer. Can you share some of your personal thoughts on the offer and the opportunity that it represents to Next Games? Annina? Sure. I mean, I think it's very exciting, and it's not just about, in my opinion, Next Games. I mean, this is potentially the largest disruption to the mobile games market since premium became free to play. It's just super important that we at Next Games are at the forefront of that, but also that Finland is, you know. I think this is just an amazing opportunity for Finland in general. It's not every day that a company like Netflix with that status, with that, you know, amazing ability and, of course, possibility to create really a strong sort of gaming hub comes along to buy a company in Finland. I think it's super important both for Next Games, for our people, for Finland and for the entire ecosystem in all of Europe really. Yeah, I might want to continue from that. You know, Finland has always been kind of an example of all these big changes like Annina mentioned. Rovio did Angry Birds. That's kind of the example of premium games, then Supercell with Clash of Clans, and that's how people kind of got familiar with free-to-play games. Hopefully, you know, now Next Games together with Netflix will redefine again how the business evolves and, you know, will make that game that globally everyone knows and hopefully plays. Great. This question seems to have been submitted just before the presentation. It's regarding Blade Runner Rogue. The person is asking, what happened to Blade Runner Rogue? There hasn't been any official announcement. Yeah, like I mentioned, it always doesn't work out, right? You know, these games even though it's a beautiful game and everything, but, you know, at the end of the day even though we did try to fix, you know, certain issues and with the game, it just didn't match the criteria level that both companies, Alcon and Next Games had, so, we decided not to publish the game. Is there any more room for smaller independent studios in mobile gaming market or is the only way to survive to join bigger players? Great question in many ways. Obviously, there's much more consolidation in the games business right now. Everyone has, you know, saw last year was huge and most likely it will continue. I think the thing with smaller studios is that, you know, it takes few years to develop a game, right? If you get financed, you start building something that probably fits the market at that point and whether the game is still relevant in two, three years is a big question mark. I’m 100% sure that there will be new studios, new games out that are done by smaller teams. You know, at the same time, business is getting tougher, so you know, partnering with bigger companies definitely makes sense as well. Mm-hmm. I'd almost add to that I think, you know, the change that IDFA brought is certainly not making it easier to publish games for independent studios, and that's why we're seeing so much consolidation happening. Hopefully, also what Netflix is now doing in gaming will kind of be almost like a renaissance for smaller studios. Again, that if you do have that larger publisher, then there will be small studios that can, you know, start to develop games for that platform as well. Hopefully small studios will remain at least on the R&D and development side. There's an additional question related to the Netflix offer. After a possible Netflix deal will the headquarters still be in Helsinki, Finland? Of Next Games, I believe, yes. They will be definitely here in Helsinki, yes. Great. It looks like there are no additional questions online for the moment. Perhaps we could take a look at if there's any questions on the phone lines. Thank you. Ladies and gentlemen, if you do wish to ask a question, please press zero one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero, two, to cancel. There will be a brief pause while questions are being registered. At this time, we have no questions over the phone. Please go ahead speakers. Okay. Thank you. It now looks like there are no further questions online either, so hoping everybody's gonna have a nice day, and thank you from us here at Next Games. Thank you. Thank you.